The oil services sector provides rigs, equipment, people, services and technology to exploration and production (E&P) companies. As the sustained oil price drives increased exploration and development budgets, the demand for rigs and specialist services is booming.
The sector is seeing price inflation and a shortage of capacity:
- The average age of the western oil industry worker is over 50, and the sector is facing a shortage of people and skills.
- A lack of investment in equipment over the past 20 years has led to very high rates for renting rigs and long lead times.
- The manufacturing capacity for rigs and drilling equipment is limited. [1]
